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Olathe businesses, property owners grapple with future over I-35, Sante Fe plan

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KSHB 41 Traffic anchor/reporter Daniela Leon covers all sorts of transportation topics across Kansas City. Have a story idea to share or a question about something in your neighborhood? Send Daniela a news tip.

Property acquisitions to make way for a major road project in Olathe are leading some businesses to shut down for the time being, relocate or embark in an eminent domain dispute with the government.

Dozens of businesses are being impacted by theI-35/ Santa Fe interchange project, which calls for a new interchange and major corridor improvements along Santa Fe from Ridgeview Road to Mur-Len.

Olathe staple, the Double Nickel Bar and Grill is one of the businesses impacted by the corridor project.

"We're just doing business the way we can, we're gonna have one heck of a blowout," said Double Nickel Bar and Grill, owner Mary Armstrong. "All of my staff have jobs moving forward and that's all I care about."

Future of Double Nickle in Olathe uncertain

Armstrong ran the Double Nickel Bar and Grill for the past eight years, and in return, made her bar become a popular spot due to its karaoke nights, holiday buffets, and charity events.

"There is nothing like it in the entire city of Olathe, and I would dare say the entire county of Johnson County, we are an amazing bar," Armstrong said.

The issue is her building is no longer available and it's set to close March 7, with the bar expected to shut down Valentine's Day weekend.

Double Nickel Bar and Grill, owner Mary Armstrong.png
Double Nickel Bar and Grill, owner Mary Armstrong

Armstrong says Olathe acquired the building to make room for the Santa Fe/I-35 project, but due to rising costs, Armstrong believes relocation for now is unlikely.

"The city will help pay all of my moving expenses, which will be great, but there's nothing available that's affordable," Armstrong said. "I find that I will never rent again. I will buy because I'm not paying, Mr. Landlords' triple nets."

Across the road, the city is utilizing eminent domain to acquire Erv’s Vacuums.

"I'm with the city that we need to change this Santa Fe interchange, but again, like I've said, it shouldn't be at the expense of the property owners to make it safe," Erv's owner, Sarah DeGondea, said.

DeGondea owns her own building and says the city’s offers - based on appraiser valuations and fair market value - are not enough to buy another building nearby.

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"We are our own billboard here in Olathe, we have been for 27 years, everybody knows where Erv's is," DeGondea said. "To replace this building, the number that the city has given us does not even touch what a building cost is in the City of Olathe."

Degondea is scheduled to attend a virtual eminent domain hearing on Feb. 24, and plans to speak in front of the City Council during their Feb. 18 meeting. Until then she she says she will continue to serve her customers and do her best to keep this decades-old Olathe business running.

Kansas open records laws prevent disclosure of land acquisition negotiations.

Last month, Cody Kennedy, spokesperson with the city of Olathe sent KSHB 41 the following statement:

"The city of Olathe continues to engage individually with owners and tenants who are impacted by the land acquisition phase of the Santa Fe/I-35 project. Following all state and federal guidelines and processes regarding property acquisition and relocation, the goal is to have the area available for the summer of 2025. All deadlines are depending on the closing date of each property so there is variation from site to site."

KSHB 41 also reached out to Olathe Mayor John Bacon who released the following statement:

"We certainly understand the concerns of property and business owners, and we are committed to treating fairly all those impacted by this project. There is a federal process we are required to follow that is designed to do just that. These federal rules and regulations dictate much of the process for property acquisition, including payment of fair market value based on a third-party appraisal and relocation costs. The city council is aware offers are being made but is not involved in negotiations.We understand this process can be frustrating. This is a very important and much needed project for our entire community. Once complete, the new interchange will be transformative for Olathe, particularly for driver's safety, economic development, and future growth."